Inflation at wholesale level slowest since June 2016
Q. Inflation at wholesale level registered a growth of what percent in Nov 2016?- Published on 16 Dec 16a. 3.15
b. 3.16
c. 3.17
d. None of the above
ANSWER: 3.15
Inflation at the wholesale level slowed in November due to subdued prices, with the Wholesale Price Index registering a growth of 3.15 per cent, its slowest rate since June 2016.
WPI registered a growth rate of 3.4 per cent in October, and the index has now witnessed a slowing growth rate for the third consecutive month as of November.
The easing in wholesale prices comes at a time when even retail price inflation has been cooling off, with the Consumer Price Index witnessing a two-year low growth rate of 3.6 per cent in November.
What is WPI?- The Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods.
- Some countries use WPI changes as a central measure of inflation. But now India has adopted new CPI to measure inflation. However, United States now report a producer price index instead.
- WPI monitors price movements that reflect supply and demand in industry, manufacturing and construction.
- This helps in analysing both macroeconomic and microeconomic factors.
